Uncorrelated variance and risk.

Thar be demons.

Suppose one day your broker calls you (not that this actually happens anymore) and tells you about an exciting, hot new stock. You remain unconvinced, and ask her to show you the data, including the investor’s favorite tool (for worse, usually), the chart. It looks something like:

You’re not very technical, so you look at the chart more abstractly. The p…

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